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7 Retirement Stocks to Buy to Sleep Soundly at Night


Retirement Stocks - 7 Retirement Stocks to Buy to Sleep Soundly at Night

Source: Motortion Films / Shutterstock.com

  • Kimberly Clark Corp (KMB) Kimberly-Clark produces many types of products, including diapers and feminine hygiene products. The company has delivered 50 consecutive years of dividend increases.
  • Lockheed Martin (LMT) Lockheed Martin is a company that has been in the aerospace industry for 100 years. This makes it a safe bet for any economic environment.
  • Merck & Co. (MRK) Merck has been paying uninterrupted dividends for more than 40 years, indicating its brand is valuable. The company has a disciplined approach towards finance.
  • AbbVie (ABBV) Humira is about to go off-patent. However, management is doing everything they can to make sure the company stays competitive.
  • Digital Realty Trust (DLR) Digital Reality Trust invests in and provides services for data centers across the world. Data center usage is growing fast, so it’s a great time to invest in this company.
  • General Mills (GIS) General Mills, a company that has a lot of well-known brands, has been able to grow its customer base over the years. This means its products will always sell, even during economic downturns.
  • Procter & Gamble (PG) P&G pays dividends and has done so for 131 years. It has increased its dividend every year for 65 years in a row. PG stock is a safe investment for your retirement fund.

As the population ages, more people are looking for ways to save for retirement. This can be done by investing in retirement stocks.

Retirement stocks have a low risk of losing value due to a downturn in the market and will not fluctuate too much based on market conditions.

It is not only difficult for retirees to save up enough money for retirement but also for people who need to save for their retirement. To have a successful investment, you must know how the stock market works and how it will affect your portfolio.

In this article, we will look at seven retirement stocks that are great for any portfolio. There is a focus on stability, but these companies also have great operating models which will continue churning profits in the long run.

Ticker Company Current Price
KMB Kimberly Clark Corp $143.48
LMT Lockheed Martin Corporation $442.89
MRK Merck & Co. $85.44
ABBV AbbVie $156.30
DLR Digital Realty Trust, Inc. $151.56
GIS General Mills, Inc. $72.20
PG Procter & Gamble Co $162.55

Retirement Stocks: Kimberly Clark (KMB)

Kimberly Clark (KMB) sign, positioned outside the world headquarters’ main entrance.
Source: Trong Nguyen / Shutterstock.com

Kimberly-Clark (NYSE:KMB) is a company that makes many types of products, including diapers and feminine hygiene products.

The company’s first product was a tissue paper mill, and the first tissue product was made from recycled cotton rags. Kimberly-Clark remains one of the leading manufacturers of paper products today.

Kimberly-Clark is a good retirement stock because it has historically provided good returns in diverse market environments. It has also proven to remain popular with many people, no matter their economic state.

This year was a momentous year for the company since it became one of the only 39 companies to have made it through 50 consecutive years of dividend increases. Despite the economic downturn, recession, and so on, this company could still hike its dividends, proving its mettle as one of the best retirement stocks.

Lockheed Martin (LMT)

A Lockheed Martin (LMT) C-130J Super Hercules of the United States Air Force performing at Aero India 2017.
Source: Joe Ravi / Shutterstock.com

Lockheed Martin (NYSE:LMT) has been a leader in aerospace, defense, security, and technology for over 100 years.

The company was founded by Clarence L. “Kelly” Johnson in 1912 to manufacture precision machine tools for the U.S. Navy during World War I. The company’s first major contract was a manufacturing order from the Army for C-4 aircraft engines for World War II bombers and fighters like the P-38 Lightning and B-17 Flying Fortress.

Lockheed Martin is best known for making the F-35 and other weapon systems. It also makes missile defense systems, military helicopters and more.

In the past 100 years, the company has had a very close and fruitful relationship with the U.S. government that has led to new products, advancements in technology, and even helping to win World War II.

Concerns about the pandemic and defense spending have caused some people to avoid the stock. However, its long association with the defense establishment makes it a safe bet in almost any economic environment.

Merck & Co. (MRK)

Merck (MRK) logo outside of corporate building
Source: Atmosphere1 / Shutterstock.com

Merck & Co. (NYSE:MRK) is one of the most popular drug companies in the United States. The company has been around since 1891 and has made many contributions to science, healthcare, and society as a whole.

Merck manufactures prescription drugs and medical devices, including vaccines, immunotherapy agents, cancer treatment, blood thinners, asthma inhalers, antibiotics, etc.

For over 40 years, Merck has been paying uninterrupted dividends, proving its brand is valuable, and the company has a disciplined approach to its finances.

Merck is looking bright with its drug development strategy. They have new products coming to market, enabling the company to manage its patent expiry schedule and keep its business strong. As a result, shareholders can expect reliable dividends too.

Retirement Stocks: AbbVie (ABBV)

abbvie (ABBV) website and logo on mobile phone
Source: Piotr Swat / Shutterstock.com

AbbVie (NYSE:ABBV) is a pharmaceutical company focusing on developing and marketing biopharmaceuticals and small molecule drugs. The company has been around for over 150 years, and it is one of the top five pharmaceutical companies in the world.

AbbVie focuses on developing new drugs for chronic diseases like cancer, immunology, infectious diseases, cardiovascular disease, endocrinology and diabetes. It makes more than 34 drugs and is developing 59 new drugs. These include several of their most popular medications.

AbbVie’s most well-known product is Humira, which is used to treat autoimmune diseases such as Crohn’s disease, ulcerative colitis, psoriatic arthritis, ankylosing spondylitis, chronic plaque psoriasis and rheumatoid arthritis.

With Humira about to go off-patent, investors are worried that AbbVie might struggle in the coming years. However, in light of new trends toward regenerative medicine and other advances, it is possible that this could be a golden opportunity for the company. AbbVie’s management has been focused on strategic investments and acquisitions to help the company stay competitive.

Digital Realty Trust (DLR)

A hallway with server racks on either side in a data center
Source: dotshock / Shutterstock

When deciding on retirement stocks to invest in, the discussion will often turn towards real estate investment trusts. A REIT is a corporation that owns real estate assets and pays out a minimum of 90% of its taxable income to shareholders through dividends.

It makes them very attractive investment options for retirees and income investors. But not every REIT is the same. For example, Digital Realty Trust (NYSE:DLR) invests in and provides services from data centers. The global data center market size is poised for growth, growing at 4.95%. Under forecast, it can reach upwards of $288.3 billion by 2027.

REITs are things that specialize in high-growth industries. Therefore, the REIT is something that focuses on a high-growth sector. Digital Realty had $1.1 billion in revenue in the fourth quarter of 2021, up from last year’s same quarter by 5%.

Funds from operations (FFO), a key metric to gauge REIT performance, came in at $3.71 per share versus 16 cents in the prior year. The company forecasts an expected 2022 year-end core FFO per share of between $6.80 and $6.90.

General Mills (GIS)

General Mills (GIS) Cereal
Source: designs by Jack / Shutterstock.com

General Mills (NYSE:GIS) has been a company producing food for over 150 years. It is the largest cereal manufacturer in the U.S. and have various products.

General Mills is well-known for its iconic brands such as Cheerios, Betty Crocker and Pillsbury. In recent years, they have also been at the forefront of innovation with products like Nature Valley granola bars and Fiber One cereal.

Historically, the company was involved in several business areas. However, in 1995, the shift to focus on consumer-packaged foods happened.

General Mills has a lot of well-known brands, which have helped grow the company’s customer base over the years. This means its products will sell, even in economic downturns.

Despite some recent changes within the company, GIS has always been a reliable source of income for investors looking to retire. It’s paid uninterrupted dividends every year since 1898, so there’s a lot of confidence in this company.

Retirement Stocks: Procter & Gamble (PG)

A photo of bottles of Tide detergent from Procter & Gamble (PG) on a store shelf.
Source: rblfmr/ShutterStock.com

Procter & Gamble (NYSE:PG) is a leading global consumer goods company that has been on the market since 1837. It is one of the world’s largest companies, with over $76.1 billion in annual revenue last year.

Procter & Gamble has been making products for over 150 years and is still going strong. It has a wide range of products designed to make life easier for their customers. Its products include cleaning agents, food, personal care items and more.

P&G is known for its brands of everyday household products such as Pampers diapers, Gillette razors, Tide detergent, Downy fabric softener and Crest toothpaste.

In addition to its household brands, P&G sells beauty care products under the Head & Shoulders brand. The company also makes health care products such as Olay skincare products and Oral-B toothbrushes under the Crest brand name.

P&G has paid a dividend for 131 consecutive years and increased its payout for 65 straight years. If you are looking for retirement stocks, it does not get any safer than PG stock.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

Article printed from InvestorPlace Media, https://investorplace.com/2022/04/7-retirement-stocks-to-buy-to-sleep-soundly-at-night-kmb-lmt-mrk-abbv-dlr-gis-pg/.

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